Dyson has parted ways with a Malaysian supplier, raising concerns about the treatment of migrant workers

[ASEAN NOW Content Team]

 

The boomtown established around Dyson's business is just a short drive across the border from its new headquarters in Singapore:
A Malaysian industrial sector dominated by ATA IMS, the country's largest provider.

ATA, one of Malaysia's leading electronics manufacturing services suppliers, benefited from Dyson's high-end vacuum cleaner and air purifier success, supplying parts for a firm that accounted for 80% of its sales.

Ten current and former employees, as well as a former ATA executive, claim that the company's expansion came at a cost:
Its primarily migrant staff was trained to hide genuine working and living circumstances from labour inspectors and Dyson by working up to 15 hours a day, skipping rest days to keep up with demand, and working up to 15 hours a day.

 

Employees indicated in interviews during the previous two months that ATA, Dyson's largest global contract manufacturer, hired thousands of foreigners without work licences, according to experts.

Following questioning from Reuters on November 18, Dyson announced last month that it would withdraw its business from ATA in six months, citing a recent independent audit on labour conditions and allegations by an unnamed whistleblower.

The Responsible Business Alliance (RBA), an organisation often used by electronics companies to undertake factory audits, audited ATA, according to a statement.
The inspections are carried out by third-party auditors hired by the RBA.
It remained silent on the subject.

 

On November 29, ATA announced that it had seen a summary of Dyson's audit, which revealed inadequate living circumstances, retribution fears, and underpaid allowances, among other things.
The findings were labelled as "inconclusive" and the company said it was reviewing them.
The audit has not been seen by Reuters.

 

ATA declined to comment, instead directing Reuters to its most recent public pronouncements.

Dyson declined to comment on Tuesday because the allegations were connected to ATA.

Malaysia announced on Wednesday that it would charge ATA in connection with complaints received through the labour department.
It did not specify the nature of the charges or complaints, or if they were related to the workers' allegations regarding its Dyson plants.

 

M Saravanan, Malaysia's human resources minister, claimed that claims of forced labour at Malaysian enterprises were damaging foreign investors' faith in the country's products.
He has previously stated that the government was looking into Dyson's choice to leave ATA.

ATA's stock plunged 60% after Dyson's announcement.
Some analysts have questioned ATA's ability to recruit new customers, and the company's announcement on Nov 29 predicted revenue decreases and expense reductions.

 

Six workers and retailers interviewed in the Johor Bahru industrial region expressed concern about losing their jobs as a result of Dyson's leaving.

On a recent Sunday, one off-duty ATA worker, dressed in his royal-blue factory work shirt, said, "There is no assurance of a job here anymore."
He, like others, wished to remain anonymous for fear of retaliation.

Although four ATA employees and a former CEO estimate that the company's workforce was as high as 17,000 until recently, including those without permits, ATA officially employs roughly 8,000 people.
According to the workers and executive, the most of the 17,000 were from Bangladesh and Nepal.